Agrochemical industry development, trends in R&D and the impact of regulation

Over the last 20 years the share of the crop protection market attributable to the leading markets (North America, EU‐15 and Japan) that are the major focus of new active ingredient research and development (R&D) has declined. Greater growth has been recorded in developing markets, questioning the focus of current R&D strategy. R&D budgets within the major companies have seen a shift toward genetically modified (GM) trait development away from agrochemicals, such that the rate of new active ingredients entering development and subsequently being introduced has declined. As a result, the industry has become more reliant on older, off‐patent chemistry, although the availability of older products has been affected by re‐registration requirements, particularly in the EU. Current criteria often preclude the registration of broad‐spectrum agrochemicals, resulting in many new active ingredients being single site active, which is perceived to increase the potential for resistance development, particularly for herbicides, although this is not always the case. © 2019 The Author. Pest Management Science published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry. Since 2014 the agrochemical industry has encountered a period of downturn affected by low crop prices and farm profitability. At the same time increasing regulation has made the introduction of new chemistry increasingly challenging, particularly in the EU where registration is now governed by hazard rather than risk. This has led to companies contemplating alternative technologies for crop protection, including biologicals/bio‐stimulants, GM crops, precision agriculture, manipulation of the microbiome etc. The need to address these alternative technologies and the downturn in the chemical crop protection sector have resulted in a significant degree of industry consolidation, which has considerably altered the competitive environment. This article addresses recent industry trends and the short‐term outlook, the impact that regulatory and consolidation events have had on new active ingredient development and introduction, and the availability of technologies in the EU in comparison with the USA and the rest of the world. Resistance development has sustained the need for new solutions, but rising costs and regulation/legislation have limited farmers’ access to some technologies. The key sectors driving growth in the crop protection sector are discussed as well as current trends in research and